INTERMEDIATE ACCT VOL.2>CUSTOM<
9th Edition
ISBN: 9781307165067
Author: SPICELAND
Publisher: MCG/CREATE
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Textbook Question
Chapter 8, Problem 8.16E
Average cost method; periodic and perpetual systems
• LO8–1, LO8–4
The following information is taken from the inventory records of the CNB Company for the month of September:
Beginning inventory, 9/1/2018 | 5,000 units @ $10.00 |
Purchases: | |
9/7 | 3,000 units @ $10.40 |
9/25 | 8,000 units @ $10.75 |
Sales: | |
9/10 | 4,000 units |
9/29 | 5,000 units |
7,000 units were on hand at the end of September.
Required:
1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September’s ending inventory.
2. Repeat requirement 1 assuming that the company uses a perpetual inventory system.
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EA5.
EA5. LO 10.2Akira Company had the following transactions for the month.Chart showing
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Purchase of March 31 of 160 units at $12 each,
Purchase of October 15 of 130 units at $15 each,
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P8.6 (LO 3) (Compute FIFO, LIFO, Average-Cost—Periodic and Perpetual)
Ehlo Company is a multi product firm. Presented below is information concerning one of its products, the Hawkeye.Date Transaction Quantity Price/Cost1/1 Beginning inventory 1,000 $122/4 Purchase 2,000 182/20 Sale 2,500 304/2 Purchase 3,000 2311/4 Sale 2,200 33Instructions
Compute ending inventory AND cost of goods sold, assuming Ehlo uses:
a. Periodic system, FIFO cost flow.
b. Perpetual system, FIFO cost flow.
c. Periodic system, LIFO cost flow.
d. Perpetual system, LIFO cost flow.
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Exhibit7.5
Sullivan Produce Co. switched from FIFO to LIFO on January1,2018, for external reporting and income tax purposes, while retaining FIFO for internal reports. On that date, the FIFO inventory equaled $360,000. The ensuing three-year period resulted in the following:
December31,2018 Year-End Costs $438,000 Cost Index 1.05
December 31,2019 Year-End Costs $460,000 Cost Index 1.15
December 31, 2020 Year-End Costs $520,000 Cost Index 1.25
Refer to Exhibit 7-5, The ending inventory at December 31,2020, using the dollar-value LIFO method would be
a. $422,000
b. $402,000
c $426,000
d. $420,400
Refer to Exhibit7-5, the ending inventory at December 31,2019, at base-year price is:
a.$400,000
b. $402,000
c.$406,000
d.$424,000
Chapter 8 Solutions
INTERMEDIATE ACCT VOL.2>CUSTOM<
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